How do courts determine damages?

In North Carolina, courts determine damages, or the amount of money one party owes another for breach of a contract, based on the actual economic losses suffered as a result of the breach. This involves taking into account the cost of goods and services purchased, labor or services provided, and the value of any goods or services not provided, but that would have been provided in the absence of the breach. In some cases, a court may award a party damages for consequential, or indirect, damages, such as lost profits due to a breach. This type of damage is only awarded if the amount of the economic loss can be proven with reasonable certainty and can be attributed to the breach. Finally, a court may award a party damages for punitive damages, or damages that are intended to punish or make an example of the wrongdoer. Punitive damages are not intended to compensate the victim; rather, they are meant to punish the wrongdoer and deter future misconduct. However, punitive damages are only awarded in rare cases, such as when there is evidence of malicious behavior or intentional wrongdoing.

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